Question

Hal is asked to write an exponential function to represent the value of a $10,000 investment decreasing at 2% annually. What multiplicative rate of change should Hal use in his function?

Answer 1

his function should look like

`M=10000*(1.00-0.02)^(y)`
or

Answer 2

P(1) = P(0) [exp (rt)]
9,800 = 10,000 (0.98)^1

r = loge (0.98) = ln (0.98) = -0.0202

P(t) = P(0)[exp(-0.0202t)]